It appears that Aruba is handling their inflation as well as they handled the Natalee Holloway investigation.

Are the tourism powers that be in Aruba going to sit back and tell us this is good for their tourism and that its flourishing? Maybe some one would like to inform tourism and government officials of simple economics. Aruba is experiencing double digit inflation. Who who be their next Prime Minister, Jimmy Carter?

Why would a traveler want to go some where that is more expensive than comparable locations? Thus, the only incentive that Aruba tourism has is to lower their prices. Thus, when they say they have an increase in tourism is it really a financial increase? When you increase tourism by 8% but have to slash your prices by 30%, is there really a profit?

From the figures of the Central Bureau of Statistics (CBS) it appears that the inflation in 2007 has reached a historic record of 10.2 percent in December; was 8.6 percent in November.

“The 6-percent difference between the 4.2 percent inflation of our most important business-partner the United States and the unprecedented high inflation of 10.2 percent of Aruba shows that the bbo has drastically influenced the price increase in Aruba.”

ORANJESTAD – From the figures of the Central Bureau of Statistics (CBS) it appears that the inflation in 2007 has reached a historic record of 10.2 percent in December; was 8.6 percent in November.

From the published figures that go back till 2000 it appears that the monthly inflation has never been this high in the past 7 years. The average inflation of the past 24 months is 6 percent. The average in December 2006 was 3.6 percent.

The tariffs for water, electricity, and gas that increased tremendously due to the international oil prices that increased to record heights, have influenced the increase of this year.

Also the introduction of the sales tax (bbo) had its effect on the increase, even though we do not know yet what that effect on the inflation figure is exactly.

Before the introduction of the bbo, the MEP-government has calculated that the effect will be 3.1 percent and they lowered the tax on wages and income to compensate this. The opposition and the employers- and employees’ unions are of the opinion that the effect of the bbo is more than the 3.1 percent calculated by the government in advance. AVP-leader Mike Eman indicated this morning that his party is of the opinion that the bbo worsens the effects of the oil prices.

“The 6-percent difference between the 4.2 percent inflation of our most important business-partner the United States and the unprecedented high inflation of 10.2 percent of Aruba shows that the bbo has drastically influenced the price increase in Aruba.”

Eman says that from the CBS-figures it appears that the inflation difference between the US and Aruba has never been higher than 1.5 percent since 1997. There were years that the inflation of Aruba and that of the US were practically the same. “You can afterwards see the changes in the years that the MEP-government has taken the increase of import costs’ measures. We are now in the danger area with the bbo as crowning touch. This 10.2-percent inflation is very damaging for the stability of our economy, the business costs, and the buying power of the citizens”, said Eman.

According to Eman, the inflation is in the double digits, which had also caused enormous impoverishment in South-America, deteriorated the mid-class, and has driven away the confidence of investors. “This is what the Oduber-cabinet is currently doing to Aruba.” The consequences are enormous, says Eman. Other than the impoverishment and the further eroding of the buying power, Aruba is also becoming too expensive. “Our competition position is liable to be pushed aside. This puts pressure on the balance of payments. A decline in foreign exchange has negative consequences for our monetary stability.” People’s interest in saving money is also dropping due to the high inflation, because the interest on the saved amount is counterbalanced by the monetary depreciation. This will also cause the interests on loans to stay high or even increase more, says Eman.

Finance-minister Nilo Swaen (MEP) indicated that he has received the figures, but he doesn’t want to comment on them yet. “I want to study these figures first.”

Comments

37 Responses to “This is good for Tourism? Inflation in Aruba at Historic Levels … “Aruba is also Becoming too Expensive””

Children of God on
January 23rd, 2008 9:37 am

George W Bushs economy is the worse in American history .But the GOP still says its good,lol. Ameriacs govt lies to its people worse than Aruba! Sad really sad isn’t it?
_________
SM: You may want to buy a vowel and a clue while you are at it.

Don’t be an A$$ your whole life.

Worst economy? Spare me the BS. Every heard of the Great Depression fool? Hell, its not even worse than the recession that he inherited from the Clinton Admin and the .com economic ponsy scheme nightmare.

Grow up and do some reading and don’t repeat foolishness. It will actually make you sound more intelligent.

If you actually believe that this is the worst economy you must really believe OJ was innocent as well. Stop being a sheep and go read a history book.

RED

Dolf on
January 23rd, 2008 10:00 am

true problem of the US, is the debt of its citizens.
Most of them been living on borrowed money so most don’t have any financial backup and finaly this is catching up.

btw. this is not typical US problem but the way our western economy works…we have to buy buy buy.

Financial prudency is not rated high these days

Dolf on
January 23rd, 2008 10:05 am

and no its not the worst (FDR had that 1)

economy goes in waves, up and down

only difference is that the eco is global and the banks have been sleeping (with dollar dreams).

Biggest mistakes by Bush is his overspendig and cooking of the books..He didn’t do the economy much good, but you can’t blae him entirely for it

Libby on
January 23rd, 2008 10:46 am

Aruba is going to sink and they have only themselves to blame.

buster on
January 23rd, 2008 11:10 am

Can any one on this site name one good thing that ever came out of aruba (We all know Jossy is good)

Cerril on
January 23rd, 2008 11:41 am

The whole world knows America’s economy is bad at the moment. Check the rate of the Dollar in comparison to the Euro. It is all about confidence. European leaders have no faith in America’s economy. The dollar is very weak in world’s economy and that is a fact. And Bush administration keep saying the economy is good! Aruba is doing the same thing: High inflation in Aruba and Oduber says: not so bad. It is what we want believe. Will the Americans believe Bush? Will Arubans believe Oduber?
I believe none of them!

LilPuma on
January 23rd, 2008 12:45 pm

5. Buster. Aloe is good. I hope it can be obtained somewhere other than Aruba and my living room. I wish I knew the source of the Aloe products I like.

The other day I was out with someone who asked if I had 5 singles for a $5 bill. I said I only had 3 singles. They said they’d take the $3 and give me the $5 bill. I said, OH! I feel like I’m exchanging Euros for U.S. Dollars! Another reason to stay in the U.S.!!!! We have beautiful beaches and snorkeling and windsurfing and casinos. We have the slow paced island ambience in the Keys and Hawaii. We have deserts and mountains and lighthouses and golf courses. Alabama is promoting golf packages and (as I’ve mentioned before) I know someone who went there, got great service planning the trip, no problem with tee times and loved it. Shop for Native American arts and jewelry in Arizona and New Mexico. AND we have Mickey on both coasts. Travel the USA people.

6. All you other places better hope the US economy is strong. Overseas, they are seeing that the Americans are not spending, result the overseas markets are falling too.

Anyone who has lived long enuff knows that the election year is a conservative spending year, ppl wait to spend to see who goes in office, if they are afraid of another getting in office they will save their money, so what does that tell you?

LilPuma on
January 23rd, 2008 12:49 pm

The US$ is weak right now. I’d guess that will bring in more tourists from outside the U.S.

ayfit on
January 23rd, 2008 1:36 pm

Screw the economy- where ever.Find Natalee and give Beth the justice she so richly deserves!

Susan on
January 23rd, 2008 1:42 pm

Aruba SUCKS in every possible way!!

BOYCOTT ARUBA AND THE NETHERLANDS TIL HELL FREEZES OVER!!

JUSTICE FOR NATALEE

Susan on
January 23rd, 2008 1:59 pm

Oh yeah, for all those unbelievers out there in denial land who thought the “boycott” would not work, well guess what? The BOYCOTT is working…LMAO!!

mommytraveler on
January 23rd, 2008 2:18 pm

LilPuma – Aloe can be obtained by simply buying an aloe plant – a succulent that is very easy to grow and can be purchased at any local nursery, K-Mart, Wal-Mart, etc. Anyone can grow one of these plants – they like lots of sunshine and very little water. By simply slicing off a side-leaf, the aloe will oouze from the leaf and can be applied directly to the skin. Great for sunburns and other topical uses on the skin. No one needs to buy any Aruba Aloe – that is simply the same thing as having your own plant but packaged in an expensive bottle. Get your self a plant – try it. It works miraculously on burns in particular.

The currency is the Aruban Florin, which is pegged to the United States dollar. Tourism, which contributes nearly 38% of the GDP, 70% of total experts and 35 % of employment is the main economic activity in Aruba. Our tourism industry has shown impressive results as compared to other destinations in the Caribbean. The boom in our tourism industry is the result of a great effort by the Government in close cooperation with the private sector and with the support of the Aruban people. Aruba offers its white sand beaches, comfortable shopping malls, nightlife, a great hospitality of the Aruban citizens, and safety.

The Government is actively promoting telecommunications, the development of the financial service industry, as well as the freezone of Aruba. A particularly positive aspect of the Aruban economy is that inflation remains under control at a level consistent with reasonable price stability. The latest official data indicating an average increase in consumer price inflation (CPI) of only 3.1% in 1997.

Oh how sad. I guess the bartenders have upped their price on spiking drinks with GHB, eh?

Maggie on
January 23rd, 2008 5:23 pm

Guaranteed if a young lady, Natalee, had not lost her life in all of this, this would be the Academy of the Year for Comedy winner. Where’s all those who show up to tell us how great Aruba is doing? He refers to the US as their most important business partner.. We’ve seen how they treat a business partner. The Oduber cabinet is doing to Aruba, what they have been doing to Natalee’s family for over 2 years.

Sasha on
January 23rd, 2008 5:47 pm

What’s interesting is that sooo many Arubans still spend thousands of dollars for their carnival costumes…It is very expensive to be part of the parades in Aruba. But then again, their carnival, their partying and their drugs and alcohol is their priority…They dont think about tomorrow. THey only think about today. Once the carnival is over, that’s when they will get hit with reality. And once again, there will be more and more crime. How sad and pathetic.

Children of God on
January 23rd, 2008 5:59 pm

To SM about no1.I was 17 when Carter was elected.During the carter administration no americans had to take paycuts layoffs and cuts in med benifits.Whem Reagan was elected during his 8 yrs in office we took a 20% paycut lost health ins and benifits you know the usual thing that happens during a GOP administration.Also during Reagan unemployment was so bad that to make ron look better he included the us military.To ease the numbers.

Children of God on
January 23rd, 2008 6:38 pm

Does everyone remeber the stock market crash of the 1980′s? Black friday was during the Reagan yrs.Reagan was also the first president to includ the military in the unemployment numbers because it was double digets.

brie on
January 23rd, 2008 6:52 pm

We can’t worry about their tourism dollars…less just find Natalee!!!!

Allan on
January 23rd, 2008 10:36 pm

What the heck talking about tourism it is an lawless island full of criminals,predators,money laundering, big drug deals from mafia-cartel. Where in the world is Natalee? Hell with Ruba.

If Aruba was sinking like a leaking ship, Jossy Mansur would be the only Aruban I would throw a life perserver.

BOYCOTT ARUBA

Dolf on
January 24th, 2008 3:30 am

Carpe: Florin comes rom the Florijn.

pre-euro it was also Dutch currency (HFL Hollandse Florijn).

Wang cares on
January 24th, 2008 8:46 am

#27 Ray

Throw Jossy Mansur a life preserver? You must be crazy! Just google his name and you’ll see what he really is all about!

Jossy must be laughing his head off. First he was a persona non grata in the US because of all the things he is involved in (don’t think for a minute he’s changed) and now you suddenly say he is the only Aruban that should be saved…

Ha! Ha! Ha!

john staton on
January 24th, 2008 9:11 am

Some time back, perhaps a year or so, I wrote a projection of what is to be expected for the economy of Aruba. If you will re read what I wrote at the time you will see that the economy of Aruba continues in the model which I predicted. If Aruba continues on the same path (most likely) then the down turn will continue until it reaches some low point of balance. Where that balance point is, I do not have data in order to project. Is there any brains there which can take action to reverse this trend? I think we all know the answer to that.

Vicki on
January 24th, 2008 9:19 am

PLEASE COME TO BOSTON….and NY…justicefornatalee@gmail.com….for info. I believe in my heart that Natalee was taken by God so that this Island would be exposed for the EVIL things going on over there. This has got to STOP. The DARK DIRTY DEEDS that have existed there for so long have fnally come to light. WE NEED TO EDUCATE PPL AT THESE SHOWS as to what SATANS ISLAND is….ITS STILL GOING ON..AMERICAN TOURISTS are still being drugged and gangraped…LOOK WHAT HAPPENED TO JOYCE BUCKLEY…

The Houston Chronicle had an ad for Carribean vacations in the Sunday paper. Aruba was actually higher that other islands. Hmmm, vacationing in Aruba because it is cheaper may be a thing of the past. Too bad.

Boycott Aruba. Going down……..

molly in houston

dennisintn on
January 24th, 2008 7:27 pm

2l, and 22. how exactly does that work? including the military in the unemployment figures? and carter, basically good man that he used to be, was probably the worst president we’ve had this century.
dennisintn

Dolf on
January 25th, 2008 3:58 am

#36 Bush did the same thing in his first term.

all of a sudden the employees working for MacDonalds were counted as production workers (factory workers)

or the hiring of the mercenaries..that enabled him to keep them out of the main budget